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Fair trade regulator CCI has approved an amalgamation involving Aarti Industries and four promoter group firms, saying the deal will not raise anti- competition concerns.
Aarti is in the business of chemicals, agro chemicals, bulk pharmaceuticals and speciality chemicals.
The company's four promoter group firms -- Gogri & Sons Investments, Alchemie Leasing And Financing, Anushakti Holdings and Anushakti Chemical and Drugs -- are not engaged in any manufacturing activities.
In an order dated July 23, the Competition Commission of India said: "The proposed combination is not likely to have an appreciable adverse effect on competition in India.
"...The transferor companies (4 promoter group firms) are the promoters group companies of Aarti Industries and as a result of the proposed combination, the promoter shareholders of the transferor companies who are also inter-alia the promoters of the transferee company shall directly hold shares in the transferee company."
The proposed deal was filed for approval before the CCI pursuant to the scheme of amalgamation approved by the respective boards of Gogri Investments, Alchemie, Anushakti Holdings, Anushakti Chemical and Aarti Industries on May 30, this year.
CCI in letter dated July 2, 2014, has asked the entities to remove certain defects and provide information following which the replies were submitted by the firms July 14.
